Abu Dhabi News: Abu Dhabi investors take part in $100m security token offering

Abu Dhabi investors are taking part in Sumner Group’s plan to raise up to $100 million through a security token offering (STO), the largest seen so far in the Middle East.

The company is raising funding through its Singapore-registered subsidiary, Sumner Global, which will sell the SGHX token, the company said in a statement.

Funds raised will support the growth of SGH’s portfolio companies and its first major UAE-based acquisition, currently under option, as SGH readies itself for a London Stock Exchange debut, it added.

Abu Dhabi investors Blue Rock Capital and Blue Stone Capital representing Khalifa Hasan Ali Saleh Al Hammadi have signed intentions of $10 million each, the company said in a statement.

It added that the remaining $80 million will be raised through private sales and subsequent listing of SGHX tokens on a suitable exchange, followed by a prospective public STO.

David Sumner, chairman and CEO of SGH said: “This is an exciting moment for Sumner Global and Sumner Group Holdings. This fundraise will allow us to strengthen our portfolio companies and execute our growth strategy throughout the region and globally. We are very grateful to our cornerstone investors for their participation.

“Security token offerings are a far cry from the days of ICOs. Investors in the SGHX STO will receive tokens that are digitally programmed, and asset backed through a combination of public and private companies. Prior to any public sale launch, the tokens will be verified as fully compliant with regulations enforced by the Monetary Authority of Singapore.

“In launching this STO, we are offering potential investors access to a digital asset backed by a diversified portfolio of natural resources, building materials, digital media and healthcare recruitment companies. Security backed by real assets.”